February 2017 Trade Bulletin

Highlights of this Month’s Edition:

• Bilateral trade: The U.S. trade deficit declined to $347 billion in 2016, a 5.5 percent decrease year-on-year, due to weakened imports; U.S. service exports hit a record high, aided by increased Chinese tourism spending in the United States.
• Bilateral policy issues: U.S. firms operating in China in 2016 report similar levels of profitability, but perceive a decline in the overall investment environment driven in part by concerns over China’s discriminatory and restrictive regulatory policies.
• Quarterly review of China’s economy: China’s GDP growth hit 6.7 percent in 2016, supported by higher government spending and record bank lending; President Xi Jinping talks up globalization at Davos amid bleak exports.
• Policy trends in China’s economy: Chinese government’s continued efforts to battle capital outflows are bearing fruit; China instructs Internet providers to end unauthorized VPN use and establishes funds for information infrastructure and development of domestic Internet companies.
• Sector focus – Aluminum: U.S. government tightens antidumping and countervailing duties and launches a WTO case to fight China’s excess aluminum production.